Google inks deal for next-gen nuclear power with TVA

Google is taking a significant stride into the future of energy, announcing a groundbreaking partnership with the Tennessee Valley Authority (TVA) to purchase electricity from a next-generation nuclear reactor. This agreement marks a pivotal moment, representing the first power purchase deal by a U.S. utility for technology of this advanced nature.

Under the terms of the agreement, TVA will acquire electricity from a cutting-edge reactor developed by Kairos Power, situated in Oak Ridge, Tennessee. The reactor, dubbed Hermes 2, is projected to commence operations in 2030, at which point it will begin supplying power to the local grid, directly benefiting Google’s extensive network of data centers located across Tennessee and Alabama. This initiative is seen as a crucial step that could ignite a new era for nuclear energy within the United States. The nation’s existing nuclear fleet largely relies on decades-old technology, which has struggled to compete economically with the low costs of electricity generated by natural gas, solar, and wind sources. Proponents believe Kairos Power’s innovative reactor design could pave the way for a nuclear resurgence, helping to meet the escalating electricity demands driven by the growth of Big Tech and artificial intelligence.

This latest announcement builds upon Google’s earlier commitment to purchase electricity from “multiple” small modular reactors designed by Kairos Power. The Hermes 2 demonstration plant is the inaugural reactor under this broader arrangement, expanding on the original Hermes demonstration reactor. Kairos began construction on the first Hermes unit last July, following a landmark construction permit from the Nuclear Regulatory Commission—the first in over half a century for a non-water-cooled reactor.

Unlike conventional nuclear reactors that depend on water for cooling, Kairos’s proprietary technology employs molten fluoride salt. This molten salt coolant possesses a significantly higher boiling point than water, meaning it operates without reaching a boil and can do so at relatively low pressures. This low-pressure operation is a key innovation, designed to substantially reduce the costs associated with nuclear energy by eliminating the need for massive, high-pressure containment structures typically required for traditional reactors.

The choice of Oak Ridge, Tennessee, as the site for Hermes 2 is particularly symbolic. Once the clandestine headquarters of the Manhattan Project, where facilities enriched uranium for the world’s first atomic bombs, Oak Ridge has since transformed into a prominent hub for advanced nuclear energy research and development.

Looking ahead, Google’s ambition extends beyond this initial project. The company aims to facilitate the deployment of 500 megawatts of new nuclear capacity across the U.S. by 2035 through its collaboration with Kairos. To put this into perspective, the 94 operational nuclear reactors in America collectively boasted a capacity of 97,000 megawatts in 2024, contributing just under 20 percent of the nation’s electricity mix. The Hermes 2 plant alone is expected to provide 50 megawatts of power.

Companies that generate carbon-free electricity, such as nuclear and renewable energy producers, can earn revenue not only by selling the power they supply to the grid but also by selling “clean energy attributes.” These are essentially certificates that represent the environmental benefits of avoiding fossil fuel emissions. Google is set to receive these clean energy attributes from the Hermes 2 plant via TVA. Tech companies with ambitious climate goals frequently acquire these attributes to offset the carbon footprint of their electricity consumption. By matching their electricity use with such certificates, a company might claim to operate on clean energy, even if its facilities are connected to a grid that still relies on fossil fuels. While the additional income from these attributes is intended to incentivize developers to add more carbon-free power to the grid, some research suggests that their actual environmental benefits are often overestimated. This context is particularly relevant for Google, whose carbon emissions increased last year amidst the rapid expansion of its AI offerings.

This bold move by Google underscores the tech industry’s growing interest in novel energy solutions to power its increasingly demanding operations and meet sustainability targets, potentially reshaping the energy landscape for decades to come.